Grid integration of electric vehicles within electricity and carbon markets: A comprehensive overview

Energy security and the urgent challenges posed by climate change remain paramount in contemporary discourse, underscoring the critical need for substantial reductions in carbon dioxide emissions. Electric vehicles (EVs) are widely regarded as a promising solution for decreasing carbon emissions and reducing reliance on fossil fuels in the transportation sector. Additionally, the development of electricity and carbon markets is essential for fostering renewable energy adoption, enhancing energy efficiency, and strengthening decentralized power supply systems. These market mechanisms are strategically designed to accelerate the transition to clean energy sources, thus reducing emissions and mitigating climate change impacts. Despite the significant body of literature exploring EV integration within electricity markets, this field remains nascent and rapidly evolving. This study presents a comprehensive review, elucidating current trends, key challenges, and future requirements. It introduces foundational concepts within electricity and carbon markets, examines diverse policy and regulatory frameworks, and highlights notable global initiatives aimed at supporting EV integration. Additionally, this review critically evaluates bidding strategies proposed in the literature, analyzing their advantages and limitations in the context of EV participation in electricity markets. The discussion further examines market clearance algorithms as applied to EV electricity trading, assessing their effectiveness, strengths, and potential drawbacks. The review concludes by summarizing critical insights and suggesting avenues for future research and innovation in EV grid integration.